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Dumb question, but I thought Tesla made its own batteries? So how does it benefit from some other company making cheap batteries?
by stevage 3y ago
Dumb question, but I thought Tesla made its own batteries? So how does it benefit from some other company making cheap batteries?
- krasin 3y agoTesla's Megafactory is making cells based on the NMC chemistry. It's a little more energy-dense than LFP, but has a lower lifespan, depends on Nickel and Cobalt and so is more expensive than LFP batteries. Also, NMC batteries are much more prone to self-ignition. LFPs are very safe in comparison, although still not as safe as LTO batteries. Tesla started to adopt LFP cells and purchases them from Chinese suppliers.
- throwaway4good 3y agoFor all other markets than the US. Tesla (mostly) produces their cars in China using batteries bought from Chinese suppliers.
- giva 3y agoI thought Panasonic made batteries for Tesla.
- tooltalk 3y ago>> I thought Tesla made its own batteries? << Tesla doesn't make their own batteries -- the company instead sources them from Panasonic (NCA), CATL (LFP), LG (NCM), and BYD (LFP). >> So how does it benefit from some other company making cheap batteries? << Tesla doesn't really directly compete in the battery market despite all the hype about Tesla revolutionazing batteries, and is happy to buy from whoever is wiliing to offer the best price. Tesla has used Panasonic's NCA since 2010's because of their high energy density and low $$/KWh; then came the Chinese LFP around 2020. The Chinese battery makers have enormous price competitive advantage b/c they dominate the raw material supply-chain (ie, mines, refineries). LFP's are however mostly limited to Tesla's base/standard range trims due to their low energy density and weight.
- stevage 3y agoThanks, super helpful. But I'm still confused what the giga factory does, if not manufacture batteries?